In 2014, HISPASAT Group consolidated its turnover in a year in which it had to face adverse situations. The reduction in available space capacity and the Amazonas 4A satellite’s delay in entering into service had a negative impact on expected revenue. Furthermore, the negative exchange rate for most of the year and the shrinking European market with capacity returns and price drops, made for a trying year.
In spite of this adverse context, HISPASAT was able to consolidate turnover thanks to strong commercial efforts, which allowed them to expand their market in Latin and Central America and the United States, reaching 119.5 million euros in revenue by leasing space capacity, a 9% increase in the region over 2013 figures. They were also able to put more capacity on the market, thanks to an agreement with Intelsat for the orbital position 55.5º West, which allowed them to expand services in Latin America.
As a consequence of these initiatives, HISPASAT was able not only to prevent their revenue from decreasing in 2014, but also to increase their portfolio of contracts on long-term satellite capacity to record levels, achieving a backlog figure equivalent to seven years' revenue for the company, one of the highest for space telecommunications operators. In 2013, the backlog was equivalent to five times revenue.
During the 2014 business year, permanent space capacity revenue was 181.2 million euros. The broadband business line generated 13.4 million euros. For occasional use, revenue reached 2.6 million euros.
(in millions of euros)
By geographic area, 38.7% of total revenue from leasing space capacity comes from Europe, 60.6% comes from the North and South American market and the remaining 0.7% from other regions.
(in millions of euros)
Operating expenses for 2014 came to 40.3 million euros.
During the 2014 business year, the Group continued to focus on activities aimed at adapting the operational structure and its costs to the needs of new satellite projects. These policies are aimed making the Group more competitive in Europe, the Americas, and other strategic regions in the near future.
Out of the evolution described in the foregoing sections, at the end of 2014 the EBITDA were 161.8 million euros. Without taking into account atypical operating expenses during the 2014 business year, the operating margin increased to 80.78%.
(in millions of euros)
By the end of the 2014 business year, HISPASAT Group had obtained an operating profit of 67.1 million euros.
The negative financial result consolidated was (16.8) million euros.
After the financial result and the results of associated companies consolidated by the equity method, the consolidated pre-tax result reached 60.3 million euros.
Likewise, in the 2014 business year, HISPASAT Group registered a net profit at the parent company of 45.6 million euros and a recurring revenue reaching 53.6 million euros.
(in millions of euros)
On 18 February 2015, the Board of Directors formulated the consolidated annual accounts for the Group, and the individual accounts for HISPASAT, S.A., the dominant firm in the Group. It is presented for approval by the general Shareholder's meeting, the distribution of 9.1 million euros of the Parent Company result.
As of 31 December 2014, bank debt had increased to 419.8 million euros.
Operating cash flow generated by HISPASAT Group in 2014 reached 100 million euros, mainly used to finance the Group's investment activities.
Cash flow from fixed asset investments (tangible and intangible) increased to 109.5 million euros, mainly from payments from investments associated with the Amazonas 5, Amazonas 4A, Hispasat 1F and Hispasat AG1 projects.
In the area of cash flow from financial activities, it is worth mentioning that 144.5 million euros of bank debt reached maturity, while 138.9 million euros were made available for new financing.
